Slower Growth During 2018 According to the US Census Bureau, total US construction put in place increased 3.4% for November 2018, compared to November 2017, or a seasonally adjusted annual rate (SAAR) of $1.3 trillion, but it was only 0.8% more than October 2018. The SAAR for residential construction put in place was $548.4 billion, a 0.6% increase from November 2017, but a 3.4% increase over October 2018. Of the residential total, $542.5 billion was private construction. Non-residential’s SAAR was $751.5 billion, a 5.5% increase over November 2017, but a 1.0% decrease from October 2018, with the lodging sub-sector recording the largest increase from November 2017, or +17.7%.

Even Slower Growth by the End of the Year According to Dodge Data & Analytics, new construction starts during December 2018 decreased 10%, following a 7% decrease for November. Non-residential decreased 14%; residential, -8%; and non-building construction, -9%. All three metrics of the Associated Builders and Contractors’ Construction Confidence Index decreased from Q2 2018 to Q3 2018, with sales, 68.6; profit margins, 63.6; and staff levels, 68.6. Any indices greater than 50 are considered positive readings. The American Institute of Architects’ Architecture Billings Index (ABI) was the lowest of the year during December 2018, or 50.4, indicating a very slight increase in architects’ billings. Residential had the lowest ABI, or 49.8, while institutional was 53.1.

Recession on the Horizon, and Then Acceleration According to Associated Builders and Contractors, only a bit more than half of contractors anticipate increasing profit margins during 2019, as labor and materials costs are expected to increase. FMI, in its 2019 Overview, forecasted a 3% increase in 2019 construction spending, with office, educational, public safety, transportation, conservation and development and manufacturing to be the leading sub- sectors, with spending increases of 5% or more. The FMI report also forecasted the largest increases in 2019 construction spending will occur in the Mid-Atlantic and Pacific regions, at +5.0% and +4.6%, respectively, with the South Atlantic region at +3.7.

Housing Market Steady, But Not Spectacular The residential housing market started 2018 well, following 2017 being the best sales year during the past 10; however, according to the US Census Bureau, November 2018 starts decreased 3.6% and completions 3.9%, compared to November 2017. According to Redfin, sales of new single-family homes decreased 4.6% during November, then an even more dismal -11.6% during December. Sales declined by double digits in all four US regions during December. Realtor.com’s forecasts for 2019 include an average mortgage rate of 5.3%, single-family-home housing starts increasing 8% and existing home sales decreasing 2.0%. Millennials will account for 45% of all 2019 home mortgages.

Addressing the Absence of Qualified Workers According to an August 2018 Associated General Contractors of America-Autodesk survey, 80% of contractors throughout the US said they were unable to find qualified craft workers, a troubling trend for the construction industry since the recession. Better news for the industry was the 52,000 new net jobs in the US Bureau of Labor Statistics’ January 2019 report, although the unemployment rate increased 1.3% from December and, at 6.4%, is 2.4 percentage points higher than the national rate. Another good trend for the future is an increasing interest among Generation Z members (9–24 years of age) in a construction career, as many would like to avoid the heavy student debt of Millennials and, instead, find entrepreneurial opportunities.

New Technologies To Improve Workers’ Productivity, Efficiency and Safety Many technology analysts consider the construction industry to be lagging in its adoption of more technology – and the industry generally agrees; however, advances are occurring, such as the 239% increase in the use of drone photography, as of May 2018. With safety a primary concern, there is increasing development and interest in smart helmets, providing thermal vision capabilities; smart vests to measure workers’ biometrics; and bionic suits, to help lift heavier materials and tools. Artificial intelligence and machine learning’s capabilities to improve productivity and automate redundant tasks will be difficult to avoid, although the Midwest Economic Council predicts automation could replace 2.7 million construction workers by 2057.

Advertising Strategies Although many construction companies’ clients are other businesses, TV, especially local news and upscale sports, such as golf and tennis, are excellent opportunities to build local awareness, with a call-to-action to visit the companies’ Websites and/or social media. Much like 2-year higher educational institutions use midday TV to target unemployed, young adults, construction companies may be able to benefit from this same strategy with a general message about a construction career and/or an invitation to a “career-day” seminar. Construction companies can advertise on your station’s Website and social media to inform the public about their largest, most beneficial projects in the market, with short videos, including drone imagery, and voice-overs explaining the highlights of the projects.

New Media Strategies Social media, Instagram and Snapchat, specifically, is an obvious channel for construction companies to promote a construction career among Generation Z members. A short video series can serve as a basic “FAQ.” Young adults in the construction industry, telling their stories in short videos, especially how they became interested in a construction career, is other excellent content for social media. Construction company may find it good PR to use social media not only to announce new projects, but also provide information to the immediate surrounding community about what times of the day there will be extra traffic and the most noise.